Construction confidence hits pre-recession high

Tue, 2 Jun 2009

Confidence in the construction sector jumped considerably in May, hitting a 21-month peak, while new contract wins fell only modestly against the previous month.
 

May’s CIPS/Markit UK Construction Purchasing Managers Index (PMI) was 45.9 points (with 50 equalling no change), the weakest rate of decline since April 2008.

Roy Ayliffe, director at the Chartered Institute of Purchasing & Supply, says: “This data suggests that, while the construction sector may be out of the intensive care unit, it’s still some way from making a full return to health and there is always danger of a relapse.

“After appearing to be in freefall in February, we are starting to see the construction economy show some signs of life and steer itself back onto the road of recovery. Latest PMI data showed the slowest rate of contraction since April 2008, with murmurs of a possible upturn in house-building activity.”